Question

Can I make smaller payment on a car loan that I'm ahead on to keep the account longer ?

I'm ahead on my car loan payments, like way ahead. I'm also trying to get a mortgage so I don't want to pay off the account until I do so. If I continue to do smaller payments, like 100$ let's say, is that going to affect my credit score negatively ?

All Responses

As long as you do not go under the minimum monthly payments... Just remember, you can always put extra into a loan principal, but you can't short the monthly payment amounts (otherwise it'll show up as a derogatory notation in your credit report, which is kind of the opposite of what you want.) --

Here's the deal: you agreed to make the set monthly payments for the life of the loan. If you put extra into it, okay, but that only shortens the life of the loan, not the monthly payments due.

Okay, so my loan is with 0% apr and when I look at the information page it says that my next payment owed is 0$, when I spoke to a representative from the company that handles my car loan, they said that my next payment is not due until september next year and I can do whatever kind of payment I want as long as there is a payment. Does that still apply, do I still need to do the minimum monthly ? I'm sorry it migh sound like a stupid question, I'm just trying to figure out the best way to go. And another question that I have now is, what happens if I'm in the middle of the proccess of getting a mortgage and my car loan is paid off, credit score drops (respectively) ?

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